LONG TERM INCENTIVE PLANS	3 Months Ended
Mar. 31, 2020
Retirement Benefits [Abstract]
LONG TERM INCENTIVE PLANS	NOTE 10 – LONG TERM INCENTIVE PLANS Restricted stock Expense in first quarter 2020 and 2019 related to employee and directors' stock-based compensation totaled $136 thousand and $100 thousand, respectively. Unrecognized compensation cost relating to the awards as of March 31, 2020 and 2019 totaled $660 thousand and $606 thousand, respectively. Forfeitures in the first quarter 2020 and 2019 totaled 0 and 100 shares, respectively. Performance-based restricted stock units On March 29, 2019, the Compensation Committee granted performance-based restricted stock units (RSU) pursuant to the 2017 Long-Term Incentive Plan to further align compensation with the Bank's performance. This RSU plan replaced the Bank's Phantom Stock Appreciation Units plan (Phantom). Salisbury will continue to record an expense for the Phantom plan until the final tranche of awards is paid out in January 2021. Salisbury's expense for the Phantom plan was $36 thousand and $64 thousand, respectively, for the three month periods ended March 31, 2020 and 2019. The performance goal under the RSU plan is based on the increase in the Bank's tangible book value by $3.50 per share over the performance period for threshold performance. Vesting will range from 75% of target for achieving threshold performance, to 100% of target for achieving target payout performance ($5.00 increase in tangible book value per share) to 150% of target for achieving in excess of target payout performance and, if the performance goals are achieved, vesting will occur no later than March 29, 2022. Compensation expense of $23 thousand was recorded with respect to these RSUs in the three months ended March 31, 2020. No performance-based restricted stock units were awarded prior to March 29, 2019, therefore no expense was recognized in the first quarter of 2019. Short Term Incentive Plan (STIP) Salisbury offers a short-term discretionary compensation plan to eligible employees on an annual basis. Under this incentive plan, Salisbury may reward employees with cash compensation if certain pre-determined Bank and individual performance goals have been achieved. The STIP expense, which is included in compensation expenses, totaled $153 thousand and $178 thousand for the three months ended 2020 and 2019, respectively. Options Salisbury issued stock options in conjunction with its acquisition of Riverside Bank in 2014. In the first quarter 2020, 1,755 stock options were exercised at $17.04 per share by one former Riverside Bank executive, who is currently a Named Executive Officer of Salisbury. Also, in the first quarter of 2020, a former Riverside employee exercised 1,350 stock options at $17.04 per share. No stock options were exercised in the first quarter 2019.

LONG TERM INCENTIVE PLANS

3 Months Ended

Mar. 31, 2020

NOTE 10 – LONG TERM INCENTIVE PLANS

Restricted stock

Expense in first quarter 2020 and 2019 related to employee and directors' stock-based compensation totaled $136 thousand and $100 thousand, respectively. Unrecognized compensation cost relating to the awards as of March 31, 2020 and 2019 totaled $660 thousand and $606 thousand, respectively. Forfeitures in the first quarter 2020 and 2019 totaled 0 and 100 shares, respectively.

Performance-based restricted stock units

On March 29, 2019, the Compensation Committee granted performance-based restricted stock units (RSU) pursuant to the 2017 Long-Term Incentive Plan to further align compensation with the Bank's performance. This RSU plan replaced the Bank's Phantom Stock Appreciation Units plan (Phantom). Salisbury will continue to record an expense for the Phantom plan until the final tranche of awards is paid out in January 2021. Salisbury's expense for the Phantom plan was $36 thousand and $64 thousand, respectively, for the three month periods ended March 31, 2020 and 2019.

The performance goal under the RSU plan is based on the increase in the Bank's tangible book value by $3.50 per share over the performance period for threshold performance. Vesting will range from 75% of target for achieving threshold performance, to 100% of target for achieving target payout performance ($5.00 increase in tangible book value per share) to 150% of target for achieving in excess of target payout performance and, if the performance goals are achieved, vesting will occur no later than March 29, 2022. Compensation expense of $23 thousand was recorded with respect to these RSUs in the three months ended March 31, 2020. No performance-based restricted stock units were awarded prior to March 29, 2019, therefore no expense was recognized in the first quarter of 2019.

Short Term Incentive Plan (STIP)

Salisbury offers a short-term discretionary compensation plan to eligible employees on an annual basis. Under this incentive plan, Salisbury may reward employees with cash compensation if certain pre-determined Bank and individual performance goals have been achieved. The STIP expense, which is included in compensation expenses, totaled $153 thousand and $178 thousand for the three months ended 2020 and 2019, respectively.

Options

Salisbury issued stock options in conjunction with its acquisition of Riverside Bank in 2014. In the first quarter 2020, 1,755 stock options were exercised at $17.04 per share by one former Riverside Bank executive, who is currently a Named Executive Officer of Salisbury. Also, in the first quarter of 2020, a former Riverside employee exercised 1,350 stock options at $17.04 per share. No stock options were exercised in the first quarter 2019.